Lifecore sells Curation Food’s avocado products business for $17.5M in cash

Lifecore announced that it has completed the sale of its Curation Food’s avocado products business for $17.5M in cash, subject to certain customary net working capital adjustments. The company completed the simultaneous sign and close of the transaction on February 7. Net proceeds from the transaction will be used to repay borrowings under the company’s credit facilities, which the company believes will drive further deleveraging and strengthen the company’s financial position, allowing management to focus greater resources and investment to Lifecore. The transaction was effectuated through the sale of all of the outstanding equity of Yucatan Foods, an indirect wholly owned subsidiary of Lifecore and Curation Foods, which included its Yucatan and Cabo Fresh brands, as well as the associated manufacturing facility and operations in Guanajuato, Mexico. The results of operations related to the Curation Foods avocado products business will be reported as discontinued operations beginning in the fiscal third quarter.